The steeper the short-run aggregate supply curve, _____
a. the steeper the aggregate demand curve
b. the larger the value of the spending multiplier
c. the larger the budget surplus
d. the larger the impact of a shift in aggregate demand on the equilibrium price level
e. the larger the impact of a shift in aggregate demand on the equilibrium output level
d
You might also like to view...
If an economy experiences an increase in its labor force, everything else constant, then its production possibilities frontier (PPF) will
A) expand outward but keep its original shape. B) expand outward largely in the direction of the labor intensive good. C) expand outward largely in the direction of the capital intensive good. D) not expand until capital grows.
Which of the following best describes average variable cost?
a. The change in total cost when one additional unit of output is produced. b. Total cost divided by the quantity of output produced. c. Total variable cost divided by the quantity of output produced. d. Total fixed cost divided by the quantity of output produced. e. Costs that do not vary as output varies.
If the price of the product produced by labor decreases, the marginal revenue product of labor curve will
A. shift to the left. B. be unaffected because productivity of labor has not changed. C. become more inelastic. D. shift to the right.
If an increase in autonomous consumption spending of $10 million results in a $50 million increase in equilibrium real GDP, then
A) the MPC is 0.5. B) the MPC is 0.75. C) the MPC is 0.8. D) the MPC is 0.9.